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IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmohan, Subramonium Prasad, JJ.
Interglobe Aviation Limited - Appellant
Versus
Assistant Commissioner Of Income Tax Circle 10 (1) Delhi - Respondent
Civil Writ Petition No. 6405 of 2022, Civil Miscellaneous Application No. 19411 of 2022
Decided On : 28-04-2022
Income Tax Act - Extension of Time for Response - The court set aside the impugned notice and remanded the matter back to the assessing officer to consider and decide the petitioner's objections within eight weeks, based on the petitioner's request for fifteen days additional time to respond.
Fact of the Case:
The petitioner challenged a notice issued under Section 148 of the Income Tax Act, 1961 and sought a direction to restrain the respondent from proceeding with the notice. The petitioner had requested fifteen days additional time to respond to the notice, but the impugned order failed to consider the petitioner's reply dated 29th March, 2022.
Finding of the Court:
The court held that the controversy revolved around the request for extension of time made by the petitioner and concluded that the impugned order and consequential notice were set aside. The matter was remanded back to the assessing officer to consider and decide the petitioner's objections within eight weeks.
Issues: The main issue was the consideration of the petitioner's request for extension of time to respond to the notice under Section 148 of the Income Tax Act, 1961.
Ratio Decidendi: The court interpreted the petitioner's request for fifteen days additional time to respond as meaning fifteen days from the date of the initial request, and based its decision on this interpretation.
Final Decision: The present writ petition and application were disposed of, and the court clarified that it had not commented on the merits of the controversy, leaving the rights and contentions of all parties open.
JUDGMENT
Manmohan, J. - Present writ petition has been filed challenging the notice dated 30th March, 2022 issued under Section 148 of the Income Tax act, 1961 ( for short 'act'). Petitioner also seeks a direction restraining the Respondent from proceeding with or giving effect to the impugned notice during the pendency of the present writ petition.
2. Learned counsel for the Petitioner states that the Petitioner received notice dated 11th March, 2022 under Section 148a(b) which directed the Petitioner to file its response by 17th March, 2022. He states that on 17th March, 2022, the Petitioner filed a plea seeking fifteen days additional time to submit its reply. He states that the petitioner proceeded to file its detailed response on 29th March, 2022. He contends that in the impugned order dated 30th March, 2022 the Revenue has failed to consider the reply dated 29th March, 2022 and erroneously noted that no reply had been filed by the Petitioner.
3. Issue notice.
4. Mr. Shailendra Singh, learned counsel accepts notice on behalf of the Respondent. He states that the Petitioner by way of its letter dated 17th March, 2022 had sought fifteen days time to respond from the date of the notice i.e. 11th March, 2022.
5. Having heard learned counsel for the parties, this Court is of the view that the whole controversy revolves around the request for extension of time made by the Petitioner vide letter dated 17th March, 2022. The relevant portion of the said letter is reproduced hereinbelow:
'..In this regard, it is humbly submitted that the assessee requires additional time to respond to the attached notice. Hence, your goodself is requested to allow us 15 days time to respond. (emphasis supplied)'
6. This Court is of the view that since the Petitioner had sought fifteen days additional time to respond, it would mean fifteen days from 17th March, 2022. Consequently, the impugned order dated 30th March, 2022 as well as consequential notice dated 30th March, 2022 issued under Section 148 of the act are set aside and the matter is remanded back to the assessing Officer to consider and decide the petitioner's objections dated 29th March, 2022 in accordance with law within eight weeks.
7. With the aforesaid the present writ petition and application stand disposed of. This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open.
The main legal point established in the judgment is the interpretation of the petitioner's request for extension of time and its impact on the impugned notice under Section 148 of the Income Tax Act,....
A time extension request must be honored to ensure fair administrative procedure under income tax regulations.
The Income Tax Officer failed to comply with mandatory response time requirements, violating the petitioner's right to due process under the Income Tax Act.
The main legal point established in the judgment is the right of the assessee to adequate time to respond to the Show Cause Notice and the exclusion of the period given to the assessee in computing t....
Petitioners are entitled to adequate time to respond to tax notices, and minimal delays in requests for adjournments, especially for residents abroad, should not result in dismissal of rights.
Notice issued without granting statutory time to respond violated the principles of natural justice, rendering the order invalid.
Statutory rights require a minimum seven-day response period under Section 148A(b) of the Income Tax Act, which was violated in this case.
Minimum time of seven days to be granted to the Assessee to file its reply to the show cause notice under Section 148A(b) of the Income Tax Act, 1961.
Assessing Officers must consider submissions from assessee under Section 148A(d) before issuing notices under Section 148 of the Income Tax Act; failing to do so invalidates the notice.
The court affirmed that taxpayers are entitled to adequate time to respond to notices under the Income Tax Act, and failure to consider timely responses constitutes a violation of statutory duties.
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